• US stocks plunged Wednesday as recession fears dampened investors’ enthusiasm for Fed rate cuts.

• The Dow Jones Industrial Average snapped its nine-day winning streak.

• Wall Street strategists have warned Fed rate cuts could possibly be a double-edged sword for stocks.

US stocks plunged on Wednesday as investors weighed the odds of recession and reined of their enthusiasm for expected rate cuts.

The Dow Jones Industrial Average snapped its nine-day winning streak, which saw a series of fresh record highs.

Investors have been riding a strong rally on expectations of Fed rate cuts next yr. But Wall Street strategists have warned rate cuts could possibly be a double-edged sword. While lower rates are bullish for stocks, additionally they can signal a slowing economy that can tip into recession.

GDP is anticipated to rise 2.7% this quarter, in response to the Atlanta Fed’s GDPNow model, down from the third quarter’s 5.2% surge. Shares of FedEx, a bellwether for worldwide economic trade, tumbled after reporting grim results.

Investors are also keeping an in depth watch on the Personal Consumption Expenditures price index on Friday, which is the Fed’s preferred inflation measure.

Here’s where US indexes stood on the 4:00 p.m. closing bell on Wednesday: 

Here’s what else happened today: 

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil slipped 0.15% to $73.83 a barrel. Brent crude, the international benchmark, dipped 0.58% to $79.24 a barrel.

• Gold ticked lower 0.41% to $2,032.01 per ounce.

• The ten-year Treasury yield fell five basis points to 3.864%.

• Bitcoin rose 2.88% to $43,570.

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